Landlords have approved Caffe Nero’s rescue deal, allowing the coffee shop chain to renegotiate rental agreements for its 800 UK stores.
The company said this afternoon that more than 90 per cent of creditors, including landlords, had given the green light to the company voluntary arrangement (CVA) proposals.
It will allow Caffe Nero to move its leases to turnover-based rental agreements, which links the amount charged by landlords to sales levels.
The CVA proposal included a modification that ensures comprimised creditors will have their arrears paid in full if the cafe group is sold to a third-party.
The change to the details of the restructuring agreement came after Caffe Nero rejected a bid by billionaire brothers Mohsin and Zuber Issa, who recently bought a majority stake in Asda with backing from TDR Capital.
Earlier today Sky News reported that EG Group, the petrol station retail chain owned by the brothers, had warned the company that it would face a legal challenge over its CVA.
More to follow